How India’s Real Estate is benefiting from new Airports

The construction of new airports is a major factor in the rapid growth of the Indian real estate market. Property values in the vicinity of airports are increasing, particularly in Tier 2 and Tier 3 cities, as they are constructed or expanded. Now that these regions are more connected, there are more business and employment opportunities.

The Impact of Airports on real estate development

1. Significant infrastructure changes

Every time a new airport is proposed, the surrounding area undergoes significant development:

• Better Roads & Transportation: Metro lines, new highways, and faster transit options are constructed.

• New Businesses: Office buildings, shopping centres, and hotels are constructed.

• Better Facilities: There is an improvement in the internet, electricity, and water supply.

2. Selecting the appropriate property type

The returns on various types of properties are dependent on the closeness to the project

• Commercial Properties: These provide higher rental income and appreciate in value more quickly.

• Residential Properties: These are safer and simpler to invest in, but they grow more slowly.

• Mixed-Use Projects: These offer the best of both worlds by combining residences, workplaces, and retail spaces.

3. Time is of the essence

The timing of your investments is just as crucial as the location:

• Early Stage (Prior to or During Construction): There is a high potential for significant profits, but there is also a high risk.

• Middle Stage (Work in Progress): Reduced risk and balanced growth.

• Last Stage (After Completion): Less opportunity for significant gains but a safer investment.

Why Real Estate Prices Increase Close to Airports

• Improved Connectivity: People prefer to live and work close to efficient transit.

• More Jobs: As businesses expand, jobs and growth are created.

• Tourism Boost: By drawing tourists, airports support nearby lodging facilities and rental properties.

• High Demand for Rentals: Nearby properties are frequently rented by professionals, frequent travelers, and tourists.

Hot spots experiencing development

• Navi Mumbai: Demand in Kharghar and the surrounding areas is being driven by the new airport.

• Yamana Expressway: The Jewar Airport is driving up the cost of real estate along this route.

• Pune: Hadapsar, Wagholi, and Kharadi are benefiting from the new Purandar project.

• Karnataka: The demand for real estate is rising due to the airports in Hassan and Vijayapura.

• Trichy: The local real estate market is benefiting from more flights at Trichy .

Cons to take into account include:

• Some residents may find plane noise to be an issue;

• Traffic jams may occur in busy areas;

• Property prices may be high due to future potential;

• The cost of living may increase in these developed areas; and

• Value is dependent on the timely completion of airport projects.

With the rise of new projects across India is reshaping the real estate landscape, especially in emerging cities. With better infrastructure, strong rental demand, and rapid property appreciation, areas near airports are becoming real investment hotspots. While there are a few challenges like noise and traffic, the long-term benefits often outweigh the risks. For investors looking for growth, connectivity, and value, airport-linked real estate offers a promising opportunity worth considering.